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Us 9, Washington 5, Lindsey Graham 5, Mcconnell 5, Boehner 4, Pentagon 4, Usaa 3, Benghazi 3, New York 3, U.s. 3, Obama 2, Bob Cusack 2, Tamiflu 2, Chris Wallace 2, John Bolton 2, Dianne Feinstein 2, Libya 2, Reid Mcconnell 1, Burlington 1, Reid 1,
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  FOX News    Americas News Headquarters    News/Business. Analysis  
   of the day's news. New.  

    December 30, 2012
    7:00 - 7:30am PST  

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before we say good buys coming up tomorrow on the show, how to avoid a bad hangover before you go out on new year's eve. plus we are on fiscal cliff eve watch. >> these are my kids. say bye to clayton. they can't get into the studio on new year's eve. >> i will not see you kids any more on the show. >> deal or no deal. captioned by closed captioning services, inc. we start this morning with
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a fox news alert from the nation's capital. you know, the final 48 hours ticking away to the fiscal cliff deadline. will there be a deal or will the $500 billion in spending cuts and tax hikes actually kick in? right now, negotiations going on behind closed doors. this while president obama has joined leaders in it both parties to make the case to the american people by appearing on the morning public affairs programs this morning. both sides pitching their proposals. but at this late point, some say any chance that congress has of averting the fiscal cliff will take serious late night legislative wrangling. good morning. i'm eric shawn. i'm heather childers in for jamie colby. without a deal the countdown to 2013 also a countdown to smaller pay checks for nearly all americans as the fiscal cliff tax hikes are set to take a bigger bite and the military
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facing serious cutbacks along with other federal programs that millions of americans count on. >> ed henry live at the white house with the latest on the negotiations. ed, we are really getting down to the wire. what did the president say this morning and will that make a difference? >> good morning, eric. part of what he was doing was putting the onus on republicans. this s his first sunday mornig appearance since 2009. on meet the press. now, pushing a deal on the fiscal cliff. as you noted on capitol hill is where all of the action is right now. the president when he bought the leaders here on friday said they have to try to work something out over the next couple of days and said on "meet the press" his position was either there is a deal or he wants the senate to bring up h his version of this short-term stop gap measure that would extend tax cuts for those making $250,000 or less
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and extend unemployment. he said if republicans stop they will be to blame for the fiscal cliff. what role do you have in this don't you have to show leadership to break the imabout passe? the president went back to pointing the finger at republicans. take a list. >> speaker boehner and republican leader mcconnell to accept the fact taxes on wealthiest americans should go up a little bit. if folks can't say yes to good offers i have an obligation of the american people to make sure that the entire burden of deficit reduction doesn't fall on seniors who are relying on medicare. >> now, what the president s correct about s that in the negotiations with speaker boehner in recent weeks the president was giving on social security and med did i kay changes that democrats were not excited about but speaker benito walked away -- but
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speaker boehner walked away from those negotiations. senator mitch mcconnell said in the last couple of days when got a phone call from the president saying let's try to come back to the table and work this out. mcconnell said that is the first time he heard from the president, senator harry reid or any of the tomorrow democrats in about a month. in terms of presidential leadership there had not been that give and take in a month. >> that is astounding as you point out for more than a point. republicans concerned about the impact of the pentagon budget if this goes through. >> when people talk about the fiscal cliff most of the attention is about taxes going up and that being the so called fiscal cliff but the other side of that cliff is that the massive spending cuts automatic cuts are kicking in at the beginning of next year. largely targeted at the pentagon. and what is interesting is all of this deal making we are talking about on capitol hill would really just focus on unemployment benefits and tax side of the cliff as i
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mentioned and most of deals it appears would not shut off the so called sequester that would hit the pentagon. on "fox news sunday" senator lindsey graham told chris wallace he got a call from the defense secretary suggesting these cuts are coming. lake a listen. >> i was called by leon panetta at 7:30 during dinner. >> secretary of defense. >> this is the failure of the supercommittee to find $1.2 trillion in cuts. half of the 1.2 falls on defense who already cut. he says if we do this we will shoot the defense department in the head and send out 800,000 layoff notices the beginning of the year. he is worried to death if we don't fix sequestration we will destroy the biggest military in the world at the time we need it most.
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>> impact potentially on the national defense. also on the markets. the president noting in the "meet the press" interviews. the markets going down on the fears there will not be a debt deal. watch out for the markets this coming week. >> they went down 158 points and see what happens on monday. certainly they will be going all night. we will get back to you once we have the latest on what if anything they can agree on. >> realistically what can lawmakers do with so little time on the clock? bring in bob cusack from the hill. if they can come to an agreement, the lawmakers still have to write the bill and produce something that can pass both chambers. will they get it done? is there enough time? >> i don't think so. not enough time to do all those things the next 48 hours injuries the house has a rule that the bill has to sit so the members and public can red read
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it. called the three day rule. basically not enough time to pass it. looks like we will go over the cliff. as ed henry was saying i think there might be more panic, a lot of panic right now in washington about going over the cliff. maybe the markets react sharply this week. tomorrow is new year's eve and we are basically no where. all eyes now on senator reid and mcconnell. can they get a deal. they are dealmakers. they struck deals before. they have been working over the last 24 hours and we still have not seen an announcement from the talks. looks like we are going over the cliff. >> that begs the question if there is reid mcconnell deal in the senate. some discussion it would probably include an extension of tax rates for most americans. extension of unemployment benefits. possibly a measure to prevent the scheduled cut in medicare payments to doctors. how will the house respond to any senate deal?
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>> i think if mcconnell is onboard he will bring a lot of republican votes. the democrats are by and large if the president supports it they will back their president. there could be enough votes in the house, speaker john boehner talked about amending that bill. i think if it gets a 70 to 30 senate vote i think i it get te votes in it the house to pass but it might not happen until after january 3, january 4. >> i want to ask you about what ed henry was just reporting. president obama says either a deal is reached or you vote on the short-term stop gap measure. if republicans fail to pass it i'm summarizing it's their fault. so the president kind of tossing the ball into the republican's camp, placing blame on them. in your opinion s that presidential leadership? >> the republicans have gone after the president that he has deferred to congress on this is that he was unable to strike a
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deal between -- with speaker boehner and now it is to reid and mcconnell. on one hand, obama is criticizing the congress but also giving them the responsibility to come up with a deal. this is on his watch. obama does not want this going into next year. he wants to move quickly on immigration and energy and maybe gun control. so, but he has not been able to strike a deal with the speaker and that is -- you know, takes two to tango, both have to compromise. both have failed repeatedly on getting a debt deal both in the summer of 2011 and now. how to it is up to the senate which up until recently has been shoved to the side. can they come to the rescue. >> thank you so much. we will see what happens. 48 hours to go. bob cusack, thank you. >> thanks, heather. >> how are the talks progressing and what about reduction in government spending? we still have the looming 16 trillion plus budget deficit. remember that? and the politicians they are taking their time on that as
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well. we will ask house budget committee member south carolina republican congressman when joins us live later this hour. he is worried that the talks have not addressed spending. so we have to address that. >> breaking news now in the benghazi terror attacks in libya. president obama this morning told "meet the press" the u.s. now has some "very good leads" about who carried out the deadly strike. >> there was sloppiness, not intentional in terms of how we secure embassies in areas where you essentially don't have governments that have a lot of capacity to protect the embassies. so we are are doing a thorough review. not only will we implement all of the recommendations that were made but we will try to do more than that. with respect to who carried it out, that is an ongoing investigation. the fbi has sent individuals to libya repeatedly.
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we have some very good leads, but this is not something that i'm going to be at liberty to talk about right now. >> the attacks, of course, killed four americans including u.s. ambassador christopher stevens. it happened back in september. how is it now that we are getting "good lead is" four months later and why haven't there been any arrests? joining us is the former ambassador to the united nations and fox's contributor are john bolton who joins us every sunday about this time. ambassador, good morning. >> good morning. >> what do you think about the president saying there are good leads? >> i think the administration has a huge credibility gap on the whole benghazi tragedy and the notion that we have got good leads three months later i think doesn't particularly ring true. i thought the other thing in the president's statement there that was absolutely stunning was for him to say that attention to security at the benghazi facility was sloppy.
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right. four dead americans. this is a tragedy. i think it demonstrates policy and management problems at the state department. and underlines why so many other american official personnel overseas and private citizens are at risk. this is not just sloppy. this is a substantial failure. the administration still hasn't answered questions about. >> we saw the bloody handprints on the side of the wall. so chilling and haunting to indicate exactly what happened there. as you mentioned the president calling it sloppy and the state department itself says it was grossly inadequate security. systematic failures and leadership in dealing with this. let me get back to the suspects that potentially carried this out. we brought to justice the u.s. embassy attackers back then. how long do you take and do you think any one eventually will be held account onlable be fors
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attack? >> i think it is doubtful. the main problem is the president continues to treat terrorist attacks as a law enforcement matter like it is a burglary of the local 7-eeleven or something. the threat of terrorism will not be resolved by a law enforcement response. we saw that during the '90s. that approach was tried and tragically failed on the first september 11th with the attacks on the world trade center and the pentagon. these are acts are war and need to be treated as such. and the president's inability or unwillingness to see that i think will believe us vulnerable to -- leave us vulture capitalister in arable to future attacks. the fact it is almost three months now since the benghazi attack with novicible retaliation and no real evidence that we are on the track of the people who committed this sends a terrible significant isal to other terrorists around the middle east and, indeed, around the world. so i'm worried that the vulnerability of americans overseas and our vulnerability
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in this country, frankly, is rising. >> you talk about a terrible signal. back in october more than two months ago, a suspect and the new york times found him sitting in a cafe. here is the quote from the new york times "just days after president obama reassert ised his vow to bring those responsible to justice mr. abu chattala spent two leisurely hours on thursday evening at a crowded luxury hotel on a patio and scoffing at the threats coming from the american and libyan governments. libyan's fledging national army is a "national chicken" mr. abu khattala said. brought toeen without to justice. >> and no reason to think any of his colleagues will be apprehended either.
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you have anarchy in somalia and yemen. and the administration just doesn't take it seriously. an administration obsessed with transforming the domestic american economy and quite comfortable with the decline in american influence overseas and techicolor it in tech any here in the next few days if the deal that they are talking about on capitol hill which does not include any solution for the defense sequestration problem of half a trillion dollars of additional cuts in our defense spending over the next several years if that kicks in as it now looks like it is going to, our ability to do much of anything around the world is going to be substantially decrease. >> that is troubling. some critics may jump on you for saying that the administration doesn't take the national security seriously. do you think that is really a fair assessment? >> i think in the list of obama's priorities national
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security is no where near the top. i think it makes him different from the long line of american presidents republican and democrats since franklin roosevelt after pearl harbor. i think idea logically he is content with the american position around the world. that is what the administration is giving us. >> blunt talk from former ambassador john bolton as always. thank you so much for joining us every sunday and we will see you, of course, if these quote good leads pan out to any arrests. >> right. happy new year. >> thank you so much. see you next sunday. the northeast once again digging out after a major snowstorm blasted the area. many without power are after a foot of snow fell in some areas. all this comes just days after another system that brought heavy snow and tornadoes to large parts of the country.
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maria molina has been tracking the system. >> we are in a low with the weather conditions. the snowstorm produced over a foot of snow in southern new england yesterday. producion gusty winds today. otherwise the southeast looking good and across the plains we do have a lot of cloud cover, not much precipitation just for that fact right there across southern parts of the state of texas but we will need to watch this area closely because believe it or not this is the next developing storm system that as we head into tomorrow night, new year's eve we could be seeing area of rain and snow across portions of the mississippi valley so of course, we will keep you posted on that. otherwise first the exiting nor'easter across portions of the northeast still producing area of snow across eastern parts of the state of maine. a number of wind advisories in effect across portions of boston into the city of fail famous music.
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philadelphia now. could see gusts up to 40 miles an hour and travel delays as far as flight goes across the area here throughout the day today. otherwise the winds are going to make it feel a lot colder than what the thermometer reads across the northeast. the current windchill. 3 degrees in burlington. in the teens across parts of upstate new york and 22 right here in new york city. >> 3 degrees. is the difference between zero and three? pretty much feels the same. >> feels like pain. >> thank you so much, maria. appreciate it. >> talking about pain, it is not the weather it is the fiscal pain we may be undertaking soon. the developments on the fiscal cliff. coming up, two top senators will tell us what we could expect and where the talks are if there are any. >> what could happen. we'll see. and russian president vladimir putin putting adoptions on hold for hundreds of american families. this is heart breaking. we will introduce you to a family whose plans to bring
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well, as we have been reporting this morning the fiscal cliff talks going down to the wire in washington. this as the president and top lawmakers are trying to avoid the potentially devastating tax increases and spending cuts that kick in with the new year. this morning on "fox news sunday," two prominent senators confident therenfy tent there will be a deal. >> hats off to the president. he stood his ground. he will get tax rate increases
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on upper income americans and the sad news for the country is that we accomplished little in terms of not becoming greece or getting out of debt. this deal won't affect the debt situation. it will be a political victory for the president and i hope we will have the courage of our convictions when it comes time to raise the debt ceiling to fight for what we believe as republicans. hats off to the president. he won. >> the time has come really to measure the absence of a deal plus against a deal and i think both of us come down that we have to solve this immediate situation. the danger to our people, to our military, to our nation's security, to our economic base is just too great not to have a solution. so you know, what makes this government work is compromise and it is when you don't compromise there is stasis. we had enough of that. >> joining us s chris wallace, anchor of "fox news sunday." good morning, chris. >> good morning. >> how could lindsey graham say
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it is a win for the president even though this does not deal with the out of control spending a $16 trillion plus budget deficit when the politicians in washington are taking little band aids when the american people want solutions? >> well, he didn't say it was a victory for the country. he said it was a victory for the president because he believes and a lot of republicans believe that the president was less interested in solving the nation's debt problem than keeping a campaign promise which was to raise taxes on the top 2 about percent. whether it is $250,000 or are $400,000, the wealthiest americans and that was his primary goal getting in and it looks like that is what he is going to get. >> what does this mean for us? >> well, it -- what you heard from both of them is it avoids the worst aspects of the fiscal cliff which is a tax increase for almost every american but in terms of addressing as you say the huge $16 trillion and growing debt over the next decade, it means almost nothing. in fact, if you look at what is going to be raised is
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$600 billion, $600 billion to $800 billion in revenue by raising the tax rates. in an economy where we are talking about a $16 trillion debt that is going to grow to 18 or are $20 trillion the next ten years it does nothing to address that and as lindsey graham said the only chance that republicans have to really deal with entitlements which are the main drivers of our debt but also other spending programs is to really dig in as he said, have the courage of their convictions when it many coulds to raising the debt ceiling which is going to come in about two months so we won't have long to wait to see that battle. >> you have been an observer of washington for a long time. do you think there will be a deal. getting down to working tonight or working overnight and then what happens as you say as you mention you have the debt ceiling issue in two months? >> well, yeah. i think there probably will be a deal and i think senator
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feinstein is correct that not having a deal the markets will react negatively. i think if you get to january 3 or january 2 i guess and there hasn't been a deal i think you would start to see a big selloff. but people should be under no illusions. the vast majority you won't see your income taxes go up. you will see payroll taxes go up because they are not going to address that. but in terms of dealing and remember the whole point of the fiscal cliff was to deal with the debt crisis. in terms of that, nothing will have been accomplished. >> and do you think, chris, that anything can be accomplished with the debt crisis? what do they do once you get past tuesday and wednesday we are still staring down that debt. can washington now or five years from now ever really address that debt do you think? >> i don't know. it is interesting. we had on the panel and i really hope people will watch "fox news sunday." interesting and intelligent conversation between lindsey graham and dianne feinstein.
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not a lot of talking points, a lot of serious conversation between two patriots. we had on the panel senator evan bayh. >> good to see you, happy new year. >> even under these circumstances good to see you and happy new year to you and everybody out there. >> fascinating and serious conversation as you you say, something that, of course, is the major topic in our country today. what do we do about the debt and the economy. lindsey graham and dianne feinstein both on "fox news sunday." check your local listings. and right here on the fox news channel so just keep it right here. >> stay right here all day long with us. >> exactly. >> and coming up now, the doctors in for their sunday house call. looking ahead to 2013 and the breakthroughs that doctors are hoping for in the new year. what kind of medical advances do you hope for in 2013 for you
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and your family? go to fox news .com/sunday house call and join our chat. the doctors will take one of our questions on the air. stay tuned. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. urey? :::::::::::::::: : : : : ally bank. your money needs an ally.
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